The planned exit of The Star Entertainment Group from the Queen’s Wharf Brisbane project fell through after the breakdown of a binding Heads of Agreement (HoA) with its joint venture partners, Destination Brisbane Consortium (DBC) and Destination Gold Coast Consortium (DGCC). Chow Tai Fook Enterprises Limited and Far East Consortium International Limited terminated the HoA despite The Star’s last-minute attempt to extend the termination deadline to 6 August 2025 to allow more time for negotiations.
Originally, The Star aimed to sell its 50% stake in DBC for AUS $53 million to focus on strengthening its position on the Gold Coast. If the deal had been finalized before 30 April 2025, the operator would not have been required to make any additional capital contributions.
Under the terms, The Star would have had to invest AUS $212 million amid a significant debt obligation of AUS $1.4 billion. In addition, The Star was to acquire two hotels from its Gold Coast partners.
In early July, after receiving a five-month notice from the partners regarding the termination of the HoA, The Star managed to extend the agreement until 31 July 2025 to finalize negotiations and documentation. However, after this date passed, the HoA was officially terminated, and the company outlined the resulting consequences.
The Star retains a 50% equity stake in DBC, one-third stake in DGCC. It holds ownership of the Treasury Brisbane hotel and adjacent parking and also 50% stake in the Charlotte Street parking facility.
At the same time The Star must repay AUS $10 million by 6 August 2025. Additionally, the company must reimburse its share of equity contributions made to DBC since 31 March 2025(estimated at AUS $31 million) by 5 September 2025.
If these amounts are not repaid, The Star will be required to transfer its one-third stake in the Tower One Hotel on the Gold Coast to the joint venture partners.
Meanwhile, the partners will reimburse The Star’s equity contributions to DGCC made since 7 March 2025, estimated at AUS $1 million.
The parent company guarantee related to The Star’s 50% share of DBC’s debt (approx. AUS $1.4 billion) remains in place. The Star will also remain responsible for future equity contributions to DBC (approx. AUS $200 million) and may need to contribute additional funds as part of refinancing DBC’s debt facility, which matures in December 2025.
The casino management agreement for The Star Brisbane remains unchanged; the company will continue to operate the casino and receive a management fee. A $35 million advance related to The Star’s share in the net proceeds of Tower Two apartment sales on the Gold Coast also remains in effect.
Despite the failed DBC exit, The Star stated that it is still in discussions with its joint venture partners and will provide updates if any material changes occur.
The company is also exploring alternative options for its 50% stake in DBC, the Treasury Brisbane hotel, and associated parking assets.
It remains unclear how the termination of the HoA will affect strategic investments from Bally’s Corporation and Investment Holdings, which involve AUS $300 million (approximately USD $195 million) in funding approved by The Star’s shareholders in June.
Ahead of the shareholder vote, The Star Chair Anne Ward stated that the investments from Bally’s and Investment Holdings would help avoid potential voluntary administration, as they “provide necessary liquidity and support The Star’s ability to continue as a going concern.”
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